Hedge Funds Kiss Their Alpha Goodbye

Before you decide to pay 2 and 20 to let some hedge fund manage your money, you might want to take a look at a couple of charts produced by Morgan Stanley strategist Adam Parker this morning.

Parker points out that the magical “alpha” hedge funds are supposed to produce with their sheer genius — meaning returns above and beyond what you’d get by simply buying an index fund and sitting around contemplating your navel — has absolutely vanished.